After defining the corporate purpose, the second fundamental decision is the company’s mission, also referred to as the corporate or business mission. The mission defines the task the company is to fulfil at the operational level, that is, its business activity. Typical mission decisions include positioning in the premium or low-price segment, or focusing on brands or private labels.
A functioning business mission must include three elements:
- need,
- capability, and
- conviction.
The business mission must be clearly distinguished from the mission statement. One must never begin with the formulation of a mission statement. These come only at the end of the business mission.
At the beginning are three key questions:
- What is the need? Or: What does the customer pay us for?
- What are our strengths? Or: What can we do better than others?
- What is our conviction? Or: Where does our strength come from when motivation is exhausted?
The interactions of these three elements give rise to the effects of the business mission.
Customer Value
Customer value emerges from the interaction of need and capability. If one of the two is missing, no value can be created.
Pride, Self-Respect and Self-Confidence
From the interaction of what the company can do and what the people in the company are convinced of arise pride in the company, as well as self-respect and self-confidence.
Meaning
Meaning emerges from the interaction of conviction and need. Meaning is more than motivation. Motivation alone is rarely sufficient to mobilise final reserves of strength; meaning is its foundation. If meaning is absent, motivation becomes ineffective.
The more complex and unpredictable the environment is, the larger an organisation is and the greater the risks involved, the more important a clearly defined and effectively communicated business mission becomes. Alignment and cohesion in organisations are hardly possible without its master control effect.
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